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Microlesson · 5-min read

Government Audit - Audit of Receipts

# Audit of Receipts

The auditor reviews whether:

  • All revenues or debts due to govt have been correctly assessed, realised and credited
  • Adequate regulations and procedures have been framed by the department
  • Such regulations and procedures are actually being carried out
  • Adequate checks are imposed to ensure prompt detection and investigation of irregularities, double refunds, fraudulent refund vouchers or other loss of revenue through fraud or omission
  • Review of systems and procedures to ensure internal procedures adequately secure correct and regular accounting of demands, collections and refunds; suggest improvements

## Authority on Quantum

The extent and quantum of audit required under each category is determined by the C&AG. These are:

  • Neither negotiable
  • Nor questioned

Worked example

### Example 1

Example: While auditing GST receipts, the auditor finds the department issued 3 refund vouchers for the same claim - this is a 'double refund' which audit must detect and investigate.

⚠️ Common exam mistakes

  • Negotiating audit coverage with the auditee - C&AG's determination is final and not negotiable
  • Limiting audit to collection only - audit covers assessment, realisation, AND crediting
Reference:
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